Heinrich, Kennedy Introduce Legislation to Expand Access to Mental Healthcare in Rural Communities

WASHINGTON - U.S. Senators Martin Heinrich (D-N.M.) and John Kennedy (R-La.) introduced their Increasing Mental Health Options Act, legislation to expand access to mental healthcare in rural communities across New Mexico, Louisiana, and the country by eliminating an outdated Medicare requirement that delays mental healthcare treatment and limits patient access to psychologists.

Unlike other insurers, Medicare does not allow psychologists to practice independently in all treatment settings, creating unnecessary barriers that delay care. These restrictions hit rural communities especially hard, where Medicare beneficiaries have higher rates of depression and anxiety but are only half as likely as those in urban areas to see a mental health specialist.

The Increasing Mental Health Options Act cuts red tape by removing Medicare's physician approval requirement, helping patients access mental healthcare faster and easier. The bill also strengthens access to this care in rural communities by making psychologists eligible for Medicare bonus payments when they provide care in areas with shortages of mental health professionals. According to a January 2026 New Mexico Legislative Finance Committee Brief, 32 of 33 New Mexico counties are designated as health professional shortage areas in primary care, behavioral health, or dental health.

"New Mexicans should have access to timely, high-quality mental healthcare whenever and wherever they need it," said Heinrich. "By expanding Medicare-covered treatment settings and encouraging more psychologists to practice where they're needed most, my Increasing Mental Health Options Act will help Medicare patients get the care they need sooner, in their home community. This is a commonsense step to ensure every New Mexican can get the mental healthcare they need, close to home."

"Medicare patients should not have to jump through hoops to get mental health treatment. Our bill will cut needless red tape so psychologists can treat patients sooner, especially in rural communities where mental health professionals are in short supply," said Kennedy.

Specifically, the Increasing Mental Health Options Act will:

• Allow psychologists participating in Medicare to independently provide services in all Medicare treatment settings, as they are allowed to do in Medicare office-based settings, under private sector health plans, in TRICARE, and within the Veterans Health Administration.

• Incentivize psychologists to practice in areas with the greatest need by making them eligible for bonus payments when they choose to practice in communities designated as mental health professional shortage areas (MHPSAs).

• Maintain long-standing Medicare requirements on psychologists' consultation with patients' physicians in accordance with accepted professional ethical norms.

U.S. Representative Nicole Malliotakis (R-NY) leads the House companion legislation. The bill is cosponsored by U.S. Representatives Judy Chu (D-CA), August Pfluger (R-TX) and Jan Schakowsky (D-IL).

"Too many seniors are facing unnecessary delays in accessing the mental health care they need because outdated Medicare rules prevent qualified psychologists from practicing independently in certain settings, despite being allowed to do so under state law. This is especially concerning as one in three newly admitted nursing home residents experience depression or anxiety. Seniors in communities like Staten Island and Brooklyn deserve timely access to the mental health services they need," said Congresswoman Malliotakis. "The Increasing Mental Health Options Act will remove these unnecessary barriers, expand access to care for Medicare beneficiaries throughout Staten Island and Brooklyn, and give patients more options when seeking mental health services. No senior should have to wait weeks for an unnecessary sign-off before receiving care from a qualified mental health professional."

The Increasing Mental Health Options Act is endorsed by the New Mexico Health Care Association / New Mexico Center for Assisted Living (NMHCA/NMCAL), the New Mexico Psychological Association (NMPA), and the American Psychological Association Services, Inc. (APA Services, Inc.).

"Providing high-quality mental and behavioral health care to residents of New Mexico's nursing facilities is a top priority for the New Mexico Health Care Association/New Mexico Center for Assisted Living and our members," said Vicente Vargas, Executive Director of NMHCA/NMCAL. "That is why we commend Senator Heinrich for introducing the Increasing Mental Health Options Act. By eliminating the outdated Medicare prior authorization requirement before psychologists can provide mental and behavioral health services in New Mexico nursing facilities, this legislation will allow nursing facility residents to receive timely access to the care they need while preserving coordination and consultation with their attending physician.

"This legislation is especially important for New Mexico's rural and frontier communities, where nursing facilities are caring for a growing number of residents experiencing depression, anxiety, and other behavioral health conditions, often compounded by social isolation and a severe shortage of mental health professionals," Mr. Vargas added. "By increasing Medicare reimbursement for psychologists who provide services in rural nursing facilities, the Act creates a meaningful incentive to expand access to much-needed behavioral health care where it is most difficult to obtain. Senator Heinrich's legislation represents an important step toward improving the quality of life and overall well-being of some of New Mexico's most vulnerable residents."

"I strongly support the Increasing Mental Health Options Act," said Katherine Belon, PhD, DBSM, President-Elect of the New Mexico Psychological Association. "I believe it will reduce barriers to mental healthcare for Medicare beneficiaries and incentivize care in high-need rural areas."

"One in three newly admitted nursing home residents arrives already struggling with depression or anxiety, yet their path to timely help is often blocked by an outdated Medicare provision. Current Medicare rules prohibit psychologists from working with patients in skilled nursing facilities, partial hospitalization programs, and similar settings until treatment is approved by a physician, needlessly delaying care. APA Services applauds Congresswoman Malliotakis and Senator Heinrich for introducing the bipartisan Increasing Mental Health Options Act to remove this barrier to prompt, effective treatment," said Arthur C. Evans, Jr., PhD, CEO of the American Psychological Association Services, Inc.

The full text of the bill is here.

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